Cloud mining is well known for its flexibility and its ease of use. Situated at the gates of classic mining, the access to hash power has never been easier than it has been since the cloud has been around. Gone are the days of worrying about the capacity, reliability and performance of mining hardware. Cloud mining is a new fetish that will appeal to the general public.
According to the digital age, the cloud has a bright future ahead of it. Those who were terminated from yesterday's mining could be seduced by today's cloud. Subjected to animated debates within the community because of the Ponzi pyramids built around it, the history of the cloud goes before a long experience where cloud mining will finally interfere. Turnkey solutions that are ideal for an audience new to cryptoactives but whose contours will have to be addressed. For now, let's move the pawns towards a paradigm shift in mining. Let's decompose.
 

THE ORIGINS OF CLOUD MINING

Definition

Before going into the details of what cloud mining is, it is worth laying down a short definition in order to understand what this famous cloud mining is.
The activity of cloud mining consists in renting a quantity of computing power to a company in order to mine cryptocurrencies.
As a reminder, cryptocurrency mining is the activity of validating transactions on the blockchain network thanks to powerful computer called miners.
In return, the miner is paid in cryptocurrency.

Context

We are therefore at the beginning of the 2010s, cryptocurrencies and mining are still young and very little democratized but the first signs of interest are starting to emerge. At this time, it is possible to mine with your own computer, but the operation requires some computer skills. And then very quickly, the world of mining is going to experience an acceleration with a turn taken in 2013. This year of 2013 marks the history of bitcoin and mining on several levels. It is first during this year that we know the first two peaks in the price of Bitcoin : between January and April 2013, bitcoin will rise from $13 to over $250 before collapsing to $60 at the end of April to bounce back and reach the symbolic $1,000 mark in December 2013. An eventful year then.

But price volatility is not the only interesting element that we are seeing in 2013. In the same year, we see the birth of several small companies that will change the world of mining forever: Bitmain and Genesis Mining.

Bitmain is today the world leader in the design of Asics mining computer, which are designed exclusively for cryptocurrency mining. The company was born during the first bull run of 2013, riding the wave that its Dutch counterpart Bitfury had taken in 2011.
Genesis Mining is the world leader in cloud mining. Often criticized for numerous scandals, it cannot take away the fact that it was a pioneer in this market.

The birth Cloud Mining

After the creation of bitcoin, many players understood quickly that cryptocurrency mining could become a very lucrative activity and progressively, the idea of having machines dedicated to this activity spread. It is in this context that companies like Bitfury or Bitmain appear. But two problems will then arise : first, that of computing power. Producing more requires more power and having more power requires more investment. Deploying a mining farm comes at a cost. Then, even if more and more investors wish to join the adventure, mining remains at this time, reserved to the most tech-savvy people, an important barrier to entry that will long slow down the adoption of cryptocurrencies.

It is in this context that Genesis Mining comes up with the concept of cloud mining : the rental of computing power. In this way, you have access to the cryptocurrency mining revolution, for a lower investment, without the contraints linked to hardware and regardless of your geographic location. A system that will quickly attract investors and allow Genesis to finance the development of new farms. Cloud mining is launched.